File your ITR. You may get some money back- Business News
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File your ITR. You may get some money back

Due date of filing an income tax return (ITR) is very near and many of us may still be confused about its benefits. What are the consequences of not filing the return? Here is a lowdown on why you are required to file an income tax return.

  • July 29, 2016  
  • |  
  • UPDATED   16:13 IST
Do I have to file a tax return?

Due date of filing an income tax return (ITR) is very near and many of us may still be confused about its benefits. What happens if one decides not to file an ITR ? What are the consequences of not filing the return? Here is a lowdown on why you are required to file an income tax return.

But first things first. There are some instances when you do not require to file a tax return. For example: it is not mandatory to file an ITR if your income is below the exemption limit of Rs2,50,000.  You have to file an ITR if your gross total income (before allowing any deductions under section 80C to 80U) exceeds Rs.2, 50,000 in the financial year (that begins on 1st April 2015 and ends on 31st March 2016). This limit is Rs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) or Rs 5,00,000 for super senior citizens (who are more than 80 years old).

Even if you do not have to file an IT, here are several reasons why one should file an ITR

Benefits of ITR

If you want to claim a refund: Suppose your tax is deducted and you want to claim a tax refund. You can claim refund only after filing an ITR. So, if you want to refund for TDS on rent payments or TDS deduction by banks on your fixed deposits, then you have to file an ITR.

If you want to carry forward losses: It is important to file an ITR, if you want to carry forward a loss under a heads of income from your business, capital gains and income from any other sources. But you cannot carry forward your loss from house property. So, filing an ITR timely is necessary.

If there is an unpaid tax liability: In case of unpaid tax liability, there would be penal interest at the rate of 1% per month from the due date of filing the return till the actual date of filing. It is therefore good to file your return on time, especially if there is an unpaid tax liability.  

If you want to revise the return: If you file your income tax return after the due date you cannot file a revised return later. The mistakes made in the original return cannot be revised later. Only people who filed their original return before the due date can file for revision.

If you want to apply for a loan: Banks generally ask for your ITR copy before giving you a loan. So, filing an ITR increases the chances of getting loan easily. You can easily approach banks for loans if you have filed an ITR.

If you want to apply for a Visa: Archit Gupta, founder and chief executive officer of www.cleartax.com, says, "There are some situations when it is beneficial to file tax returns - A proof of return filing may be required at the time of applying for a loan or a visa."

So, what are you waiting for? If you want to avail the above mentioned benefits do file your return on time.